Consolidating student loans low interest rates
Most federal student loans also don’t require credit checks to qualify.
If you graduate and work in public service – i.e., for the government or a qualifying nonprofit – the federal government also offers loan forgiveness options.
At first glance, private student loans might appear to have lower interest rates than federal student loans – but those lowest advertised rates are only for loan applicants who have excellent credit scores.
The average college student won’t qualify for these rates or will be forced to sign with a cosigner.
Private Student Loans As a general rule, don’t consider getting a private student loan until you’ve maximized your federal student loan options.
Private student loans are similar to credit card loans.
Student loans are considered higher risk than car loans, house loans and other loans you can get from a local bank.
You will have to go to a lender that specializes in student loans or to a bank big enough to offer them.
Limits also increase if you’re going to professional or graduate school.
We used companies’ loan calculators, called their customer service agents (listening to the same 30 seconds of Vivaldi while on hold gets old fast) and read as much of the fine print as we could (there was a lot).
Here’s what we found: Loan Limits Every student loan, whether federal or private, has a borrowing limit.
The first place you should look for help paying for school is scholarships and grants. If you’ve maximized those opportunities, see if your college offers a work-study program.
Work-study jobs are government-subsidized and are available to students who demonstrate financial need.
Federal Student Loans The federal government has a robust set of loans that can help students make college more affordable.